The growing need to develop environmentally friendly energy sources such as renewable energy and geothermal energy has prompted investors to view companies in the sector with renewed interest. Despite irrefutable merits, companies in the geothermal space remain few and far between. Admittedly, the industry requires specialised knowledge, appropriate development sites and of course access to finances. The closure of the first tranche of private placement by Canadian Venture listed Sierra Geothermal Power Corporation (TSX.V: SRA) therefore adds considerable impetus to its investment case.

Even though the industry certainly has irrefutable merits there aren’t too many companies engaged in the development of geothermal projects.

Solar panel makers Suntech Power Holdings (NYSE:STP), LDK Solar (NYSE:LDK) and Canadian Solar (NASDAQ:CSIQ) all posted quarterly losses Tuesday, as high solar panel production output has led to tough competition and a 40 percent plunge in prices.

Magma, one of the world's largest deveopers of geothermal projects, said that geothermal will remain a core focus of the new company, but hydro, wind and solar assets will be "solid business platforms" for future growth.

To finance the cash portion of the deal, Innergex will issue 16.1 million subscription receipts at a price of $9.35 per receipt.  BMO Capital Markets and National Bank Financial have agreed to underwrite the deal.

Unlike solar and wind power, which are subject to constant flux, geothermal electricity generation operates without interruption.

During the most recent period, total net revenues grew 19.0% sequentially and 57.2% year-over-year to $743.7 million, as the company said it sold more product in the Americas in the third quarter than it did in the full year of 2009. Suntech even opened a module manufacuturing facility in Arizona with expected 50MW capacity to help the company service the increasing demand in the region.